Neepa Real Estate Private Limited has acquired an 18-acre plot in Mumbai from Borosil Glass Works in a deal worth Rs 830 crore.
The property is located in Marol, Andheri (East), where the real estate market has been witnessing a massive growth for the last few years, primarily due to commercial as well as residential development. Earlier this year, Sheth Developers purchased 14 acre of land from GTC in Vile Parle for Rs 591 crore, and Wadhwa Group acquired an 18-acre plot in Ghatkopar for Rs 571 crore from Hindustan Composite.
Speaking on the transaction, Borosil’s vice-chairman and managing director P.K. Kheruka said, “In the interest of generating maximum value for the shareholders, we considered this as an opportune time to unlock value from the sale of the Mumbai real estate property.”
Borosil Glass Works, which manufactures sheet glass, laboratory glassware and microwavable kitchenware, said that it would use the sale proceeds into business opportunities that would maximize shareholder value. However, the forty-eight-year-old company did not make it clear how much of the sale proceeds it would use to expand capacity
Chetas Desai, the managing director of Ambit Corporate Finance, said that Borosil Glass would use proceeds to expand its business and slash debt pile. Currently, Borosil is burdened with a debt of approximately Rs 50 crore.
Ambit Corporate Finance was the exclusive financial advisor to Borosil on the deal, while Khaitan & Co and Kanga & Co acted as the legal advisors to the company on the transaction.
The deal consideration is almost two-and-a-half times the market capitalisation of Borosil. The announcement of the deal pushed shares in Borosil up 5 per cent to Rs 779.95 on BSE, putting the company’s market capitalisation at Rs 309 crore.
The property is located in Marol, Andheri (East), where the real estate market has been witnessing a massive growth for the last few years, primarily due to commercial as well as residential development. Earlier this year, Sheth Developers purchased 14 acre of land from GTC in Vile Parle for Rs 591 crore, and Wadhwa Group acquired an 18-acre plot in Ghatkopar for Rs 571 crore from Hindustan Composite.
Speaking on the transaction, Borosil’s vice-chairman and managing director P.K. Kheruka said, “In the interest of generating maximum value for the shareholders, we considered this as an opportune time to unlock value from the sale of the Mumbai real estate property.”
Borosil Glass Works, which manufactures sheet glass, laboratory glassware and microwavable kitchenware, said that it would use the sale proceeds into business opportunities that would maximize shareholder value. However, the forty-eight-year-old company did not make it clear how much of the sale proceeds it would use to expand capacity
Chetas Desai, the managing director of Ambit Corporate Finance, said that Borosil Glass would use proceeds to expand its business and slash debt pile. Currently, Borosil is burdened with a debt of approximately Rs 50 crore.
Ambit Corporate Finance was the exclusive financial advisor to Borosil on the deal, while Khaitan & Co and Kanga & Co acted as the legal advisors to the company on the transaction.
The deal consideration is almost two-and-a-half times the market capitalisation of Borosil. The announcement of the deal pushed shares in Borosil up 5 per cent to Rs 779.95 on BSE, putting the company’s market capitalisation at Rs 309 crore.
No comments:
Post a Comment